Answer to Question #202978 in Economics for Rashida Akyaa

Question

Given the technical coefficient matrix and the final demand matrix below.

0.05 0.25 0.35

0.33 0.10 0.12

0.19 0.38 0

Explain the economic meaning of the elements 0.33, 0.25, and 0

Answer 1

0.33 the amount of costs of the second resource on the demand for the first type of product

0.25 the sum of the costs of the first resource for the demand for the second type of product

0 the sum of the costs of the third resource for demand for the third type of product